Nothing To See Here, Says Blackmail Victim

Yesterday I posted about a charge made by a lawyer representing some of the Chrysler creditors, that one of his clients quit because of pressure from the White House. That charge has been denied by both the White House and the client.

The White House is denying the charge, as is Perella Weinberg. Interestingly, however, Perella — in denying that it was threatened — does concede that the decision was made due to political pressure and not just financial considerations. According to the firm’s statement, the firm stated the decision was made after considering the “president’s words” condemning the holdout creditors. “It is not our investment mandate to pursue political or risky legal campaigns,” it explained.

Perella Weinberg certainly would have much to lose in a political squabble with the White House. For instance, as noted in a Foundry post on Friday, the firm has a major consulting contract with the FDIC on banking issues.

The lawyer said that Perella Weinberg withdrew because,

…One of my clients was directly threatened by the White House…and in essence compelled to withdraw its opposition to the deal under threat that the full force of the White House Press Corps would destroy its reputation if it continued to fight…

A reasoned, judicious decision, or submitting to White House blackmail? You decide.